LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Drug Maker Agrees To Pay $95M To Settle Federal Securities Law Claims

LOS ANGELES - A drug maker will pay $95 million to settle claims that it misrepresented certain safety concerns with two of its products in violation of federal securities laws, according to a motion for preliminary approval of settlement filed July 21 in California federal court (In re Amgen Inc. Securities Litigation, No. 07-2536, C.D. Calif.).

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $23.5M Securities Class Action Settlement

SAN FRANCISCO - A federal judge in California on July 18 granted preliminary approval of a $23.5 million settlement between shareholders and a semiconductor company and others in a securities class action lawsuit, appointing shareholders as class counsel and approving the proposed settlement class (Keith Thomas, et al. v. MagnaChip Semiconductor Corp., et al., No. 14-1160, N.D. Calif.).

Mealey's Securities/D&O Liability - Pension Funds Appointed As Co-Lead Plaintiffs In Securities Class Action

PORTLAND, Ore. - Without providing further detail, a federal judge in Oregon on July 13 appointed two pension funds as lead plaintiffs in a securities class action lawsuit against a metal components manufacturer and two of its executive officers (Kevin Murphy v. Precision Castparts Corp., et al., No. 16-0521, D. Ore.).

Mealey's Securities/D&O Liability - Judge: No Manifest Errors Of Law Exist In Securities Suit Ruling

DALLAS - Ruling that defendants in a Securities and Exchange Commission civil enforcement action have failed to show that a federal district court committed manifest errors of law or fact, a federal judge in Texas on July 13 denied the defendants' motion for reconsideration of his ruling granting summary judgment in favor of the SEC (Securities and Exchange Commission v. Arcturus Corp., et al., No. 13-4861, N.D. Texas; 2016 U.S. Dist. LEXIS 88410).

Mealey's Securities/D&O Liability - Defendants To Pay $64M To Settle Claims In Long-Running Securities Suit

TOLEDO, Ohio - Defendants in a long-running securities class action lawsuit will pay $64 million to settle claims that they misrepresented a company's business and financial condition in violation of federal securities laws, according to a motion for preliminary approval of settlement filed in Ohio federal court on July 14 (Plumbers & Pipefitters National Pension Fund, et al. v. Michael Burns, et al., No. 05-7393, N.D. Ohio).

Mealey's Securities/D&O Liability - Defendants' Arguments In Favor Of Dismissal Lack Merit, Shareholders Say

BROOKLYN, N.Y. - Defendants in a securities class action lawsuit have failed to show that dismissal is warranted because their arguments in favor of dismissal "lack merit," shareholders argue in a July 11 opposition brief filed in New York federal court (Saleh Altayyar, et al. v. Etsy Inc., et al., No. 15-2785, E.D. N.Y.).

Mealey's Securities/D&O Liability - Lead Plaintiff Properly Cured Loss Causation Pleading Deficiencies, Judge Rules

SAN DIEGO - A federal judge in California on July 12 substantially denied a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the lead plaintiff in the action properly pleaded loss causation in making his federal securities law claims (Brad Mauss v. NuVasive Inc., et al., No. 13-2005, S.D. Calif.; 2016 U.S. Dist. LEXIS 90412).

Mealey's Securities/D&O Liability - Securities Suit Must Be Tried In Washington Federal Court, Judge Rules

SALT LAKE CITY - A federal judge in Utah on July 11 denied motions to dismiss a securities lawsuit filed by Chinese investors against parties to an escrow agreement but ruled that the transfer of the action to Washington federal court was necessary under the terms of a forum-selection clause in the escrow agreement (Chi Chen, et al. v. U.S. Bank National Association, et al., Nos. 15-850 and 15-851, D. Utah; 2016 U.S. Dist. LEXIS 89764).

Mealey's Securities/D&O Liability - Judge: Tipper Breached Her Fiduciary Duty To Employer In Insider Trading Suit

BOSTON - The Securities and Exchange Commission has properly alleged that a day trader's tipper in an insider trading lawsuit breached her fiduciary duty to her employer in providing inside information regarding a merger deal, a federal judge in Massachusetts ruled in a July 12 opinion (Securities and Exchange Commission v. Vlad B. Spivak, et al., No. 15-13704, D. Mass.).

Mealey's Securities/D&O Liability - Institutional Investor Appointed Lead Plaintiff In Securities Class Action

SAN JOSE, Calif. - Appointment of an institutional investor as lead plaintiff in a securities class action lawsuit is proper because the investor has met all statutory requirements to serve in the role and because no other investor has properly rebutted the presumption that the institutional investor is the most adequate lead plaintiff, a federal judge in California ruled June 28 (In re Extreme Networks Inc. Securities Litigation, No. 15-4883, N.D. Calif.; 2016 U.S. Dist. LEXIS 84005).

Mealey's Securities/D&O Liability - Judge: Amended Complaint Fails To Cure Pleading Deficiencies In Securities Suit

NEW YORK - A federal judge in New York on June 24 denied a motion to alter or amend judgment and for leave to file a second amended complaint in a securities class action lawsuit, ruling that any amendment would be futile because the shareholders' additional evidence does not cure any of the pleading deficiencies that led to dismissal of the previous amended complaint (In re Sanofi Securities Litigation, No. 14-9624, S.D. N.Y.; 2016 U.S. Dist. LEXIS 82453).

Mealey's Securities/D&O Liability - Motion To Stay In Securities Suit Fails To Meet Nken Factors, Judge Rules

NEW YORK - A federal judge in New York on June 24 denied a motion for a stay in a securities class action lawsuit and several related actions, ruling that the defendants' motion fails to meet the guidelines established in the U.S. Supreme Court's ruling in Nken v. Holder (In re Petrobas Securities Litigation, No. 14-9662, S.D. N.Y.; 2016 U.S. Dist. LEXIS 82426).

Mealey's Securities/D&O Liability - SEC: Merrill Lynch To Pay $415M To Settle Claims It Misused Customer Cash

WASHINGTON, D.C. - Merrill Lynch, Pierce, Fenner & Smith Inc. has agreed to pay $415 million to settle claims that it engaged in a scheme whereby it misused customer cash to generate profits for Merrill Lynch and failed to "safeguard customer securities from the claims of its creditors" in violation of federal securities laws, according to a press release issued by the Securities and Exchange Commission on June 23 (In the Matter of Merrill Lynch, Pierce, Fenner & Smith Inc., et al., No. 3-17312, SEC).

Mealey's Securities/D&O Liability - Investor Argues It Properly Pleaded All Elements Of Its Securities Law Claims

PITTSBURGH - Dismissal of a securities class action lawsuit is not proper because the lead plaintiff in the action has properly pleaded a material misrepresentation or omission, scienter and loss causation, the lead plaintiff argues in a June 20 opposition brief filed in Pennsylvania federal court (James Martin v. GNC Holdings Inc., et al., No. 15-1522, W.D. Pa.).

Mealey's Securities/D&O Liability - HSBC To Pay Record $1.5B Settlement To End Securities Class Action

SAN DIEGO - In what is being called a record recovery for shareholders, HSBC Finance Corp. has agreed to pay more than $1.5 billion to settle claims that its predecessor-in-interest, Household International Inc., and certain of its executive officers and directors issued a series of misrepresentations concealing Household's involvement in a predatory lending scheme in violation of federal securities laws, according to a press release issued by shareholder counsel June 16 (Lawrence E. Jaffe Pension Plan v. Household International, Inc., et al., No. 02-5893, N.D. Ill.).

Mealey's Securities/D&O Liability - 3rd Circuit To Hear Appeal In Petrobas Securities Class Action Lawsuit

NEW YORK - Without providing further detail, the Third Circuit U.S. Court of Appeals on June 15 agreed to hear an appeal of a ruling in a securities class action lawsuit filed in New York federal court that partially dismissed claims against a Brazilian oil company, its outside auditor and others (In re Petrobas Securities Litigation, No. 14-9662, S.D. N.Y.; 2016 U.S. Dist. LEXIS 76844).

Mealey's Securities/D&O Liability - Shareholders To Pay $8.5M To Settle Claims In Securities Class Action Lawsuit

PHILADELPHIA - Urban Outfitters Inc. and certain of its executive officers will pay $8.5 million to settle claims that they misrepresented the clothing retailer's business and financial condition in violation of federal securities laws, according to a stipulation of settlement filed June 8 in Pennsylvania federal court by the lead plaintiff in the action (In re Urban Outfitters Inc. Securities Litigation, No. 13-5978, E.D. Pa.; 2016 U.S. Dist. LEXIS 24915).

Mealey's Securities/D&O Liability - Panel: Court Applied 'Proper Legal Standard For Scienter' In Securities Suit

PASADENA, Calif. - A federal district court applied the proper pleading standard in determining that a shareholder failed to plead scienter in making his federal securities law claims against a pharmaceutical company and certain of its executive officers, a Ninth Circuit U.S. Court of Appeals panel ruled June 8 in affirming the district court's ruling (Nathaniel L. Anderson v. Peregrine Pharmaceuticals Inc., et al., No. 14-55882, 9th Cir.).

Mealey's Securities/D&O Liability - SEC Fines Morgan Stanley $1 Million For Failing To Protecting Customer Data

WASHINGTON, D.C. - In a June 8 order, the Securities and Exchange Commission penalized Morgan Stanley Smith Barney LLC $1 million for failing to properly safeguard its customers' personally identifiable information (PII), which led to an employee's misappropriation of hundreds of thousands of customers' information and its being posted on certain websites (In the Matter of Morgan Stanley Smith Barney LLC, No. 3-17280, SEC).

Mealey's Securities/D&O Liability - Shrkeli, Greebel Plead Not Guilty To Additional Claim In Ponzi Scheme Suit

BROOKLYN, N.Y. - Alleged Ponzi scheme mastermind Martin Shkreli and his alleged accomplice, Evan Greebel, each pleaded not guilty to a newly filed claim of conspiracy to commit securities fraud in a superseding indictment, according to court documents filed in New York federal court on June 7 (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).

Mealey's Securities/D&O Liability - Pension Fund Named Lead Plaintiff In Securities Class Action Lawsuit

NEW YORK - A federal judge in New York on June 7 appointed a pension fund as lead plaintiff in a securities class action lawsuit, ruling that the fund has met all statutory requirements to serve as lead plaintiff (Juan Francisco Nieves, as trustee of the Gonzalez Coronado Trust, v. Performance Sports Group Ltd., et al., No. 16-3591, S.D. N.Y.).

Mealey's Securities/D&O Liability - Lead Plaintiff, Lead Counsel Appointed In Securities Class Action

SAN FRANCISCO - A federal judge in California on June 1 appointed a shareholder as lead plaintiff in a securities class action, ruling that no evidence was provided showing that the shareholder fails to meet all statutory requirements for serving in the role (William Monachelli v. Hortonworks Inc., et al., No. 16-0980, N.D. Calif.; 2016 U.S. Dist. LEXIS 71575).

Mealey's Securities/D&O Liability - Investors Seek Preliminary Approval Of $140M Securities Class Action Settlement

NEW YORK - Defendants in a securities class action lawsuit have agreed to pay $140 million to settle claims that they misrepresented a company's compliance with environmental regulations for a South American mine project in violation of federal securities laws, according to documents filed in New York federal court on May 31 (In re Barrick Gold Securities Litigation, No. 13-3851, S.D. N.Y.).

Mealey's Securities/D&O Liability - 8th Circuit Won't Rehear Appeal In Securities Class Action Against Best Buy

ST. PAUL, Minn. - The Eighth Circuit U.S. Court of Appeals on June 1 denied a petition for rehearing filed by shareholders in a securities class action lawsuit in which an Eighth Circuit panel reversed and remanded a federal district court's class certification ruling (IBEW Local 98 Pension Fund, et al. v. Best Buy Co., Inc., et al., No. 14-3178, 8th Cir.).

Mealey's Securities/D&O Liability - 8 Financial Institutions To Pay A Total Of $190M To Settle FDIC Claims

WASHINGTON, D.C. - Eight financial institutions will pay a combined $190 million to settle claims that they issued misrepresentations concealing the true investment quality of Countrywide Financial Corp. residential mortgage-backed securities (RMBSs) in violation of state and federal securities laws, according to a press release issued on June 2 by the Federal Deposit Insurance Corp. (FDIC).